Kansas City Fed Reports Slowing Manufacturing Activity

Manufacturing activity in the Federal Reserve Bank of Kansas City‘s district is slowing sharply this month as reports on business conditions retreat after showing strength in May, according to a report released by the bank Thursday.

The Kansas City Fed’s manufacturing composite index–an average of the indexes covering production, new orders, employment, delivery times and raw-materials inventories–fell to 3 in June retracing a rebound to 9 in May up from 3 in April. Readings above zero denote expansion.

On a year-over-year comparison, the composite index dropped to 24 from 27.